Simple guide to buying
Once you have found a property that matches your criteria and you want to start the acquisition process, here are the different steps.
Step # 1 – The bid and the negotiation.
A written offer: No negotiation in the Principality can start without a written purchase offer, written by us. A real estate agent does not transmit oral bids. Only exceptional circumstances justify this use.
A detailed offer: The written offer presents the buyer, with details and description of the concerned goods, the offered price and the terms and timing of the acquisition. The document also presents the amount of notary legal fees paid by the buyer (6% of the sale price). In the Principality of Monaco, the buyer must also pay a commission to the agent as compensation for his intervention. These fees are in excess of 3% calculated on the sale price + VAT 20% (on the 3%) – customary commission for real estate agents members of the Real Estate Board of Monaco.
Offer supported by a deposit: The sincere and good faith of the buyer must be confirmed by a deposit, which will be collected by the notary once the offer is accepted. This deposit is used to demonstrate the seriousness of the offer to the seller. Agreed to a sum of 10% of the sale price in most cases, the deposit varies depending on the situation. In Monaco, it is generally made with a single cheque from a bank in the Principality of Monaco or a bank transfer upon acceptance of the offer. Unless otherwise specified by the buyer, the notary before the agreement of both parties never collects the latter.
Offer with a legal value: The offer to purchase is a document that has a real legal value in Monaco. When it is accepted and supported by a deposit cheque, the accepted offer is a firm commitment of both parties. If the buyer were to withdraw from the transaction after the seller has accepted the sale, the deposit cheque would be his ipso facto. On the other hand, faced with a defaulting seller, the deposit is handed back and the notary forces the seller to pay compensation for the same amount. In this case, a procedure to force the seller to go through the actual sale may be considered.
An offer followed by a sales agreement? The possibility is left to the two parties to agree on the signing of a sales agreement. More detailed than a simple bid and preparing the authentic deed, it can strengthen both parties in their respective intentions while protecting them by a notary. This phase may be useful in the event of a transaction when the signature as authentic but distant or when the complexity of the situation requires.
Step #2 – The responsibility of the Notary and the Deed.
The notary is a public officer acting on behalf of the State. It gives the acts he wrote a guarantee of authenticity. This means that it has the prerogatives of public power. The notary is first and foremost a professional who has the authority to authenticate documents by affixing his seal and his signature. He personally testifies the will expressed by the parties and is liable for the content and the date of the act.
The deed by its formalism confirms the contents of the sale and the agreement between the parties with probative and executory strength. This act imposes the same force as a final judgment. It sets the property to a certain date and protects your interests seamlessly.
In the Principality of Monaco, three studies are available:
- Aureglia-Caruso Nathalie – Postal Address: 4 boulevard des Moulins 98000 Monaco – Tel. 93 10 60 60 – Fax. 93 30 50 54
- Crovetto-Aquilina Magali – Postal Address: 31 Boulevard Charles III, 98000 Monaco – Tel. 93 50 54 13 – Fax. 93 30 56 73
- Henry Rey – Postal address: 2 rue Colonel Bellando de Castro, 98000 Principality of Monaco Tel. 93 30 41 50 – Fax. 93 30 05 22